Convergys Customer Management Group, Inc - Offering Memorandum Actual Location - Compass
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Actual Location
Offering Memorandum
Convergys Customer Management
Group, Inc.
2451 Monarch | Laredo, TX 78045
Confidentiality and Restricted Use Agreement This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC. This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This Offered Exclusively by COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations Albert Muller or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions Associate Director of documentation and/or financial information contained herein are qualified in their entirety by reference to amuller@stanjohnsonco.com the actual documents and/or financial statements, which upon request may be made available. An interested TX Lic# 459937 party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC. The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title. BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and Stan Johnson Company claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request 10333 Richmond Ave | Suite 740 by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Houston, TX 77042 Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, P: +1 832.476.3440 you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or stanjohnsonco.com related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.
Section One
Executive Summary
Actual Location
The Offering Purchase Price: $9,900,000
Stan Johnson Company is pleased to offer for sale to
Cap Rate: 7.72%
qualified investors this +/- 61,290 square-foot, single-
Investment Highlights
tenant call center facility located in Laredo, Texas
(the “Property”) and leased to Convergys Customer
Management Group, Inc. (the “Tenant”). Located
in a booming corridor surrounded by many of the
country’s predominant retailers, the Property sits Strong Corporate Guarantee
on 8.75 acres. The Property is located in one of the Tenant Convergys -- As of December 31, 2015, Convergys Corporation had total annual revenues of over
fastest-growing areas of Webb County in south Texas $2.95 Billion, annual sales growth of 3.33%, annual net income of $169.00 Million, Annual Net income
and has been ranked as one of the fastest growing growth of 40.83%, Total Assets of $2.36 Billion, and a publicly reported Net Worth of $1.28 Billion US
municipalities in the U.S. Dollars. BB+ Rated by S&P Rating service.
Originally constructed as a build to suit for the Tenant, Construction
the Property is constructed of concrete tilt-up panels The offering is constructed of quality precast concrete tilt-up panels.
and is 100% leased to the Tenant under a double net Site
(NN) lease with a newly renewed five (5) year term The building is located in a booming corridor surrounded by many of the country’s predominant retailers
and three (3), five (5) year option to extend. on a generous 8.75 acres. With abundant retail-like street frontage, the site provides an owner many
The Tenant is a subsidiary that represents over 90% of alternative use options.
the total revenue for Convergys Corporation (NYSE: Mission Critical
CVG), the second-largest customer management Laredo boasts 95% Hispanic population with recent professional studies indicating 65% prefer speaking
service provider in the world, with a primary focus Spanish. This location is critical to Convergys is that it is a constant supply of bilingual Spanish speaking
on growth with multinational corporations and other personnel for hire.
large companies in the communications and media,
financial services, technology, healthcare, and other Replaceable Rent
vertical markets. Boasting such strategic customers At $12.47 PSF, the Tenant’s rent is in line with the market, providing the ability for an owner to meet or
as AT&T, DIRECTV, and Comcast, Convergys is a increase the rent with a new tenant in the future if needed.
member of the S&P 500, Fortune 1000, Forbes 2000, Location
and rated Ba1 and BB+ by Moody’s and Standard The Property is located in one of the fastest-growing areas of Webb County characterized by strong retail
& Poor’s, respectively. In the fiscal year of 2014, growth as well as the continued expansion of the International Trade Bridge. This bridge is the only border
Convergys Corporation reported $2.86 billion in crossing operated 24 hours a day between US and Mexico. Mexico is the US 2nd largest trading partner.
revenues with a net operating income of $116.5 million
and net worth of $1.23 billion. In March of the same Strong Secondary Use
year, Convergys Corporation acquired Stream Global Significant Retail, Office and Medical developments are located in the immediate area as well as the two of
Services, Inc., strengthening not only its position as largest High Schools in the South Texas Region.
the leading U.S. provider of outsourced customer Very Attractive “Annual” Rental Increases
management services, but also expanding its global The lease terms possess 3% annual rental increases which is very rare and will provide a very attractive
footprint to now having 125,000 employees in 31 return on investment.
countries.
Section 1 • Convergys • Laredo, TX 4
Section Two
Property Overview
Actual Location
Lease Abstract
Tenant: Convergys Customer Management Group, Inc.
Square Footage: +/- 61,290 SF
Rent Commencement Date: February 15, 2002
Lease Expiration Date: February 28, 2022
Subject Property
Lease Term Remaining: Five (5.2) years
NOI/Rent: $764,286.30 *Beginning March 1, 2017
Rent Schedule
Rent Increases: 3% per annum Years Annual Rent Increase
Year 1 (March 1, 2017 –
$764,286.30 N/A
Lease Type: NN February 28, 2018)
Year 2 (March 1, 2018 –
Landlord Responsible for Structure Only. All $786,963.60 3%
February 28, 2019)
Repair Responsibilities: other expenses Landlord to pay and pass
through 100% Year 3 (March 1, 2019 –
$810,866.70 3%
February 28, 2020)
Renewal Options: Three (3), Five (5) year options
Year 4 (March 1, 2020 –
$835,382.70 3%
February 28, 2021)
Parking: Exclusive to Tenant Year 5 (March 1, 2021 –
$860,511.60 3%
February 28, 2022)
Section 2 • Convergys • Laredo, TX 6
Tenant Overview
A leader in customer management for over 30 years, Convergys (NYSE: CVG) is uniquely focused
on helping companies find new ways to enhance the value of their customer relationships and
deliver consistent customer experiences across all channels and geographies. Every day, over
80,000 employees help the clients balance the demands of increasing revenue, improving
customer satisfaction, and reducing overall cost using an optimal mix of agents, technology, and
analytics. The actionable insight stems from handling billions of customer interactions annually
for the clients. Among Fortune 500 companies, over half of the top 50 are clients that trust their
most important relationships to Convergys.
The company grew from Cincinnati Bell Information Systems and MATRIXX, both subsidiaries of
Cincinnati Bell, and AT&T Solutions Customer Care (formerly AT&T American Transtech), which
was sold to Cincinnati Bell in 1998; an IPO in August 1998 made it a fully independent company.
Since then, Convergys’ headquarters in Cincinnati, Ohio, has acquired numerous companies.
Convergys sold its Human Resources Management line of business to NorthgateArinso in March
2010. On 22 March 2012, Japanese technology firm NEC announced it would buy the Information
Management Business of Convergys for approximately $449 million. In 2012, Convergys
Philippines, 8 years after its entry into the country established 18 centers with 26,000 employees
in all, was named “BPO Employer of the Year” at the annual International ICT Awards. One of the
Convergys offices in Gurgaon, India.
Convergys has approximately 80,000 employees in 70 customer contact centers and other
facilities in India (New Delhi,Gurgaon, Pune, Thane, Hyderabad, and Bangalore), the Philippines
(Manila, Cebu City, Davao City, Baguio City, Santa Rosa and Bacolod), Vietnam, Indonesia, United
States, Canada, Costa Rica, South America, Europe, the Middle East, Africa, and Asia.
As of December 31, 2015, Convergys Corporation had total annual revenues of over $2.95 Billion,
annual sales growth of 3.33%, annual net income of $169.00 Million, Annual Net income growth
of 40.83%, Total Assets of $2.36 Billion, and a publicly reported Net Worth of $1.28 Billion US
Dollars.
Visit www.convergys.com for more information.
Representative Photo
Representative Photos
Section 2 • Convergys • Laredo, TX 7
Section Three
Market Overview
Actual Location
Location Overview
Laredo Top Employers
Laredo is the county seat of Webb County, Texas,
located on the north bank of the Rio Grande Employer Category Employees
in South Texas, across from Nuevo Laredo, United Independent
Tamaulipas, Mexico. According to the 2010 census, Education 6,179
School District
the city population was 236,091 making it the
Laredo Independent
tenth most populous city in the state of Texas Education 4,500
School District
and 3rd most populated on the United States-
Mexican border, after San Diego and El Paso. City of Laredo Government 2,371
Its metropolitan area is the 178th-largest United
States metropolitan area and covers all of Webb Laredo Sector Border
Immigration 2,000
county, with a population of 250,304. Laredo is Patrol
part of the Laredo-Nuevo Laredo Metropolitan
Area with an estimate population of 636,516. H-E-B Grocery 1,626
Laredo International Bridge
Laredo’s economy is based on international trade Webb County Government 1,500
with Mexico. Most major transportation companies
have a facility in Laredo. The city’s location on the Laredo Medical Center Health Care 1,300
southern end of I-35 close to the manufacturers
in northern Mexico promotes its vital role in trade Texas A&M
Education 1,215
between the two nations. Laredo International International University
Airport is within the Laredo city limits, while the
Quetzalcoatl International Airport is nearby in McDonald’s Food 1,200
Nuevo Laredo on the Mexican side.
Walmart Retail 937
Laredo has a professional soccer team, the Heat;
baseball team, the Laredo Lemurs; and a women’s Convergys Call Center 860
full contact football team, the Laredo Roses.
Texas A&M International University and Laredo
Doctors Hospital Health Care 811
Community College are located in Laredo. Laredo Medical Center
International Bank of Financial
661
Commerce Services
Stripes Convenience Retail/
337
Stores Convenience
Laredo Entertainment
Entertainment 293
Center
Falcon International Financial
292
Bank Services
Laredo Courthouse
N
Section 1 • Walgreens • North Myrtle Beach, SC 10STAT EMERGENCY
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Section 3 • Convergys • Laredo, TX 11LAREDO CHILDREN’S
MUSEUM MEXICO
Laredo Medical
Center
Laredo
International
Airport
Tejas Industrial
Park Pellegrino Industrial
Park & Laredo
United High School & Distribution Center
Laredo Country De Llano Elementary
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Section 3 • Convergys • Laredo, TX 12Demographics 2451 Monarch | Laredo, TX 78045 0 - 1 mi. 0 - 3 mi. 0 - 5 mi. Population 2016 Population 12,667 45,169 91,424 2021 Population 14,504 50,230 99,936 2010-2016 Annual Rate 1.32% 2.51% 1.87% 2016-2021 Annual Rate 2.75% 2.15% 1.80% Households 2016 Total Households 3,667 13,250 26,503 2021 Total Households 4,192 14,749 28,969 2010-2016 Annual Rate 1.33% 2.52% 1.86% 2016-2021 Annual Rate 2.71% 2.17% 1.80% 2016 Average Household Income $90,102 $93,651 $82,398 2016 Median Household Income $80,986 $79,056 $64,920
Offered Exclusively by
going beyond
Albert Muller
Associate Director
amuller@stanjohnsonco.com
TX Lic. # 459937
Stan Johnson Company
10333 Richmond Ave | Suite 740
Houston, TX 77042
P: +1 832.476.3440 | F: +1 832.476.3449
stanjohnsonco.com
The information contained herein was obtained from sources believed reliable, however,
Stan Johnson Company makes no guaranties, warranties or representations as to the
completeness thereof. The presentation of this property for sale, rent or exchange is
submitted subject to errors, omissions, change of price or conditions, or withdrawal
without notices.Approved by the Texas Real Estate Commission for Voluntary Use
Texas law requires all real estate licensees to give the following information
about brokerage services to prospective buyers, tenants, sellers and landlords.
Information About Brokerage Services
B efore working with a real estate broker, you should
know that the duties of a broker depend on whom
the broker represents. If you are a prospective
seller or landlord (owner) or a prospective buyer or
tenant (buyer), you should know that the broker who lists
Act. The broker must obtain the written consent of each
party to the transaction to act as an intermediary. The
written consent must state who will pay the broker and, in
conspicuous bold or underlined print, set forth the broker’s
obligations as an intermediary. The broker is required to
the property for sale or lease is the owner’s agent. A treat each party honestly and fairly and to comply with
broker who acts as a subagent represents the owner in The Texas Real Estate License Act. A broker who acts
cooperation with the listing broker. A broker who acts as as an intermediary in a transaction:
a buyer’s agent represents the buyer. A broker may act as (1) shall treat all parties honestly;
an intermediary between the parties if the parties (2) may not disclose that the owner will accept a
consent in writing. A broker can assist you in locating a price less than the asking price unless authorized in
property, preparing a contract or lease, or obtaining writing to do so by the owner;
financing without representing you. A broker is obligated (3) may not disclose that the buyer will pay a price
by law to treat you honestly. greater than the price submitted in a written offer
unless authorized in writing to do so by the buyer; and
IF THE BROKER REPRESENTS THE OWNER: (4) may not disclose any confidential information or
The broker becomes the owner’s agent by entering into an any information that a party specifically instructs the
agreement with the owner, usually through a written - broker in writing not to disclose unless authorized in
listing agreement, or by agreeing to act as a subagent by writing to disclose the information or required to do so
accepting an offer of subagency from the listing broker. A by The Texas Real Estate License Act or a court
subagent may work in a different real estate office. A order or if the information materially relates to the
listing broker or subagent can assist the buyer but does condition of the property.
not represent the buyer and must place the interests of With the parties’ consent, a broker acting as an
the owner first. The buyer should not tell the owner’s intermediary between the parties may appoint a person who
agent anything the buyer would not want the owner to is licensed under The Texas Real Estate License Act
know because an owner’s agent must disclose to the and associated with the broker to communicate with and
owner any material information known to the agent. carry out instructions of one party and another person who
is licensed under that Act and associated with the broker
IF THE BROKER REPRESENTS THE BUYER: to communicate with and carry out instructions of the
The broker becomes the buyer’s agent by entering into an other party.
agreement to represent the buyer, usually through a
written buyer representation agreement. A buyer’s agent If you choose to have a broker represent you,
can assist the owner but does not represent the owner you should enter into a written agreement with the broker
and must place the interests of the buyer first. The owner that clearly establishes the broker’s obligations and your
should not tell a buyer’s agent anything the owner would obligations. The agreement should state how and by
not want the buyer to know because a buyer’s agent must whom the broker will be paid. You have the right to
disclose to the buyer any material information known to the choose the type of representation, if any, you wish to
agent. receive. Your payment of a fee to a broker does not
necessarily establish that the broker represents you. If you
IF THE BROKER ACTS AS AN INTERMEDIARY: have any questions regarding the duties and
A broker may act as an intermediary between the parties responsibilities of the broker, you should resolve those
if the broker complies with The Texas Real Estate License questions before proceeding.
Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.
Buyer, Seller, Landlord or Tenant Date
Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question EQUAL HOUSING
OP P O RT U N I T Y
or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960.
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